Contingent Consideration

9 Months Ended

Sep. 30, 2011

Contingent Consideration

Contingent Consideration

10.Contingent Consideration

In conjunction with the acquisition of Östergrens, the Company recorded contingent cash consideration based on the seller meeting certain performance criteria.  The Company paid a portion of the contingent consideration in the quarter ended March 31, 2011.  The remaining portion of contingent consideration accrued is $2,498,000 as of September 30, 2011 and is expected to be paid in the first quarter of 2012.  The contingent consideration accrued as of September 30, 2011 is management’s best estimate through the date of the financial statements.  As the contingent consideration accrual is based on Östergrens meeting certain performance criteria through the end of 2011, it is reasonably possible that the accrued amount will be adjusted downward upon completion of the performance period.  No adjustment to management’s estimate of the contingent consideration was made in the quarter or nine months ended September 30, 2011.  If the accrued amount is adjusted down, it will have a favorable impact on net profit for the quarter ending December 31, 2011. The change in the accrued amount from December 31, 2010 of $112,000 is due to the changes in foreign exchange rates since December 31, 2010.